General Terms and Conditions (GTC): What You Need to Know

Introduction

The General Terms and Conditions (GTCs) form the legal basis for business relationships between companies and their customers. These standardized contractual terms regulate the key aspects of the business relationship and create clear agreements for both parties.

For freelancers and companies in Switzerland, GTCs are an indispensable tool for legal security. They:

• Minimize legal risks

• Define the rights and obligations of the involved parties

• Create clarity in the business relationship

• Save time on contract completions

• Protect against costly legal disputes

The professional drafting of GTCs is becoming increasingly important in the digital age. In this article, you will find a practical guide to creating legally compliant GTCs. You will learn what you need to pay attention to and how you can optimally secure your business relationships:

• The use of GTCs in Switzerland

• Advantages of GTCs for freelancers

• Typical contents of GTCs

• Tips on creating effective GTCs

• Conclusion

The use of GTCs in Switzerland

AGB are pre-formulated contract clauses that are already widespread in the business world. The legal framework for GTCs in Switzerland is based on the Code of Obligations (OR) and federal court jurisprudence. Swiss law recognizes two central mechanisms to control whether AGB become part of the contract and are valid in content:

• The inclusion control checks whether GTCs have become part of the contract at all

• The content control examines the admissibility of individual clauses

The GTCs must be accessible to the contracting partner before the contract is concluded. A subsequent introduction or change is ineffective without express consent. If these requirements are violated, individual clauses or the entire GTCs may be void.

Prohibited clauses are in particular:

• Exclusions of liability for gross negligence or intentional acts

• Unilateral amendment reservations

• Excessive penalties

• Unusual provisions (the Unusualness rule protects customers from surprising clauses. Provisions that the customer could not reasonably expect are not part of the contract)

Benefits of GTCs for freelancers

Well-structured GTCs provide freelancers with a solid legal foundation for their business relationships. The written fixation of business terms creates clarity and minimizes the risk of misunderstandings between the contracting parties.

Key benefits for freelancers:

• Legal certainty: Clear definition of the rights and obligations of both parties

• Efficiency increase: Standardized processes for recurring business transactions

• Risk minimization: Security in case of payment defaults or disruptions to services

• Cost savings: Avoidance of individual contract negotiations

The GTCs serve as a preventive tool to avoid disputes. They regulate important aspects such as:

• Payment terms and consequences of default

• Liability limitations

• Warranty rights

• Withdrawal and termination modalities

A professionally designed GTCs document strengthens the freelancer's position in contract negotiations and protects against unjustified claims. The integration of AGB into daily business allows for secure and efficient business management.

Typical contents of GTCs

Effective GTCs are characterized by precise, legally compliant content. The following core elements are essential for legally secure GTCs:

Basic components:

• Clear identification of the contracting parties

• Detailed description of services

• Prices and payment terms

• Delivery and performance conditions

• Warranty and liability

• Jurisdiction and applicable law

The formulation of GTCs must be understandable to the average customer. Unclear or ambiguous clauses are often interpreted to the disadvantage of the drafter in a dispute.

Tips for creating effective GTCs

The successful drafting of GTCs requires careful planning and implementation. These practice-proven recommendations support you in creating legally secure GTCs:

As a first step, a thorough analysis of your own business model is recommended, in which specific risks are identified. At the same time, all relevant business processes should be recorded and documented. The clear definition of responsibilities and accountabilities rounds off this process.

When designing GTCs, it is important to avoid typical sources of error. An unreflective adoption of third-party GTCs without appropriate adaptation to one's own business needs can be problematic. Hidden or surprising clauses should be avoided, as well as unclear or ambiguous terms.

Best practices for design

• Use a clear structure with subheadings

• Use short, concise sentences

• Highlight important provisions visually

• Use consistent terminology

• Regularly check the currency of the GTCs

Professional support from legal experts ensures that your GTCs meet all legal requirements and at the same time optimally protect your business interests. Regular review and updating of the GTCs ensures their lasting effectiveness.

Conclusion

The creation of legally secure GTCs is essential for the business success of freelancers and companies. Professionally structured terms and conditions:

• Protect your company from legal risks

• Create clarity in the business relationship

• Save time and costs in contract processing

• Strengthen your customers' trust

The investment in legally compliant GTCs pays off in the long run. Consult with experts to create and meet all legal requirements while optimally protecting your business interests.

Act now: Review your existing GTCs or create new ones that are tailored to your business model. Jurata AG supports you with legal expertise in the successful implementation of your corporate goals.